AA co had budgeted production of $4000 units for december and the budgeted costs were
materials $120000
Labour $200000
fixed overheads $350000
The actual production in december was 35000 units
What are the flexed budgeted cost?
Can I see a calculation please?
Ask the Tutor ACCA MA
Flexed costs
11y ago#1materials and labour are variable costs, and so the total of these will be 35,000 x $320000/40000. Fixed overheads will stay at $350,000 (by definition).
thank you, you are very prompt and useful in your replies.
11y ago#3You are welcome :-)
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